Reverse Mortgage Lender

Learn about the different types of reverse mortgage lenders so you can decide which one will best suit your needs.

A reverse mortgage is an option for elders who are on a very restricted budget wherein they can get a loan out of their home equity and would not have to make a payment until their house is already sold. As soon as the house is sold, the loan amount plus the interest for the loan period will be paid back to the lender in full. It is crucial to make comparisons on programs offered when taking on a reverse mortgage, and the same goes with a reverse mortgage lender. There are several types of reverse mortgage lenders and below are the details on how these lenders differ from one another.

Home Keeper Reverse Mortgage Lender

This type of reverse mortgage lender is the one that allows homeowners to access their home equity and pay back through monthly installments. The payments to be made will be until the homeowner does not live in the home anymore. The amount of loan is valued on the home of the borrower.

Home Keeper Reverse Mortgage Lender
This type of reverse mortgage lender is the one that allows homeowners to access their home equity and pay back through monthly installments. The payments to be made will be until the homeowner does not live in the home anymore. The amount of loan is valued on the home of the borrower.

In the late 1930’s many Americans could not afford a home and many ended up with foreclosure of their homes. Franklin Delano Roosevelt, of New Deal Fame, was helpful in creating Fannie Mae. Fannie Mae is originally the Federal National Mortgage Association and is a government chartered mortgage broker which has become the foundation of the U.S. housing industry.

Fannie Mae is a trusted name when it comes to secondary mortgage market specifically in the reverse mortgage business. The Home Keeper product is commonly known in many lenders’ suites of products and is a very reliable alternative to the HUD Home Equity Conversion Mortgage. The Fannie Mae’s Home Keeper Mortgage is similar to the HUD HECM but has a few more flexible benefits such as higher borrowing limit, senior homeowner’s power to control equity for purchase of new home and the availability of the loan to single-family home and condo owners.

Jumbo Reverse Mortgage and Property Reverse Mortgage Lenders

This type of reverse mortgage lender is designed for homeowners with high value property to gain access to greater amounts of their home equity compared to what is available from the government insured HECM Reverse Mortgages. The Jumbo Reverse Mortgage and Property Reverse Mortgage are structured and backed-up by private companies, unlike the HECM which is structured and insured by the federal government.

The Jumbo Reverse Mortgage is offered to owners with home values that reach more than $625,500.00. However, the specifics of the loan will still vary depending on the age of the borrower and the location of the property. With this type of reverse mortgage, there is higher possibility for you to get more money out of a high value home compared to other types of reverse mortgage lenders.

Whichever you decide to get, make sure that you take the time to review and research the differences between reverse mortgage lenders. By doing so, you will definitely end up saving a lot of money on interests and other costs during the loan period.